Modern-Day Stagflation Hurting Middle Class

Modern-Day Stagflation Hurting Middle Class

The 70 percent of Americans that comprise the middle class have been suffering for years from “stealth stagflation” that is driven by high taxes and oppressive regulations.

Stagflation is defined by Merriam-Webster as a condition of “persistent inflation combined with stagnant consumer demand and relatively high unemployment.” According to the Bureau of Labor Statistics, the official unemployment was at 7.8 percent in January 2009, when President Obama took office. The rate soared to 10 percent in October of that year and has been sinking steadily to 5 percent last month. But the “good news” has not been from an expansion in the percentage of Americans working, but rather millions who ran out of benefits up and stopped looking for jobs.


If those “discouraged” workers were added back into the mix, the unemployment rate would jump to 11 percent. Today, there are more people out of work now than when Obama moved into the White House.


America’s growth rate has been averaging about 2.2 percent, following the worst recession since the Great Depression. But historically, coming out of a recession the economy should grow at 3.5 to 4 percent.


The Consumer Price Index underestimates the true rise in cost of most of the items the middle-class buys. According to the Chapwood Index that tracks the price changes for the top 500 items that middle-class Americans buy, true inflation is up about 9 percent in the last 12 months.


Despite government statistics and what our political leaders say, middle-class Americans are being devoured by the virus of stagflation.


And despite promises that government could grow the middle-class from the middle out, ever-rising taxes and the cost of complying with onerous government regulations on businesses have caused prices to rise, unemployment to remain high, the economy to remain stagnant, and the federal government debt to rise to $19 trillion.


The 2016 election is an opportunity to choose a president who will cut taxes and unnecessary regulations. But Americans must put someone in charge that understands the problem, knows how to fix it and promises actually to do something about it.


Published at BreitBart by Ed Butowsky on 11/4/2015.

    Media

    Modern-Day Stagflation Hurting Middle Class

    on Nov 09, 2015 in Articles, Media Center by Ed Butowsky | No Comments »
    Modern-Day Stagflation Hurting Middle Class The 70 percent of Americans that comprise the middle class have been suffering for years from “stealth stagflation” that is driven by high taxes and oppressive regulations. Stagflation is defined by Merriam-Webster as a condition of “persistent inflation combined with stagnant consumer demand and relatively high unemployment.” According...

    Stocks Sell Off In Wake Of Fed’s Decision, Worries About Global Economy

    on Sep 21, 2015 in Fox News, Media Center by Ed Butowsky | No Comments »
    Stocks Sell Off In Wake Of Fed's Decision, Worries About Global Economy The market this week has gone off the rails. The DOW ended Friday careening about 300 points. This occurring the day after the Federal Reserve did not hike interest rates. This news ordinarily would be great news to analysts and investors alike but these markets are paranoid these days. It certainly begs the question by analysts and investors...

    Going For Broke

    on Sep 15, 2015 in CBS, Media Center by Ed Butowsky | No Comments »
    Going For Broke Professional athletes, rookies and veterans alike, take to the field this weekend as the NFL season starts up officially. The systemic problem in the NFL is that many of these players will go broke once their playing days are over. Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, discusses...

    Stock Markets Around The World Plummet

    on Aug 26, 2015 in Al Jazeera, Media Center by Ed Butowsky | No Comments »
    Stock Markets Around The World Plummet For the last 6 years stocks have been rallying. This represents the DOW and S&P’s biggest one day percentage drop since 2011. There are market analysts that claim there are several reasons why this may be occurring and those are China, interest rates in the US, and or the drop in oil prices. Ed Butowsky, wealth manager, financial...

    Crime & Cash In Cuba

    on Aug 19, 2015 in Fox News, Media Center by Ed Butowsky | 1 Comment »
    Crime & Cash In Cuba Robert Vesco was a notorious white collar criminal. A Wall Street’er that took off with $200 Million of investors money. With the SEC on his tail he took sanctuary in countries like Cuba where he managed to evade American authorities until his final breadth. The Chief Enforcement Officer of the SEC, was Ed Butowsky’s father. His...

    About Ed

    Ed Butowsky is a nationally-recognized expert in investment management. Butowsky has been in the financial services industry for over 22 years. He was previously a Senior Vice President at Morgan Stanley and a Managing Director ... More »

    Contact

    Ed Butowsky, Managing Partner
    Chapwood Capital Investment Management, LLC
    Website: www.chapwoodinvestments.com
    Email: ed@chapwoodinvestments.com
    Phone: (972) 865-2225